at the first of the year, mustang company issued 10% bonds with $70,000 face value that will mature in 10 years. Interest is paid semi annually. The market yield for bonds of similar risk is 9%. The correct answer is closest to which of the following?

- The total amount of interest paid for the year on these bonds is $7455

- And recording this bond issue, mustang will credit premium on bonds payable for $4553

- And recording this bond issue, mustang will debit cash for $70,000

- Total interest expense recognized for the year on these bonds is $6300

At the first of the year, Mustang Company issued 10% bonds with $70,000 face value that will mature in 10 years. Interest is paid semiannually. The market yield for bonds of similar risk is 9%. The correct answer is closest to which of the following? Round all computations to the nearest \$1. The total amount of interest paid for the year on these bonds is $7,455. In recording this bond issue, Mustang will credit premium on bonds payable for $4,553. In recording this bond issue, Mustang will debit cash for $70,000. Total interest expense recognized for the year on these bonds is $6,300